Watch the testing video here:
SRange Contraction Indicator
Introduction to the SRange Contraction Indicator
The name of the SRange Contraction indicator calculates the ratio between today’s and the previous day’s ranges and displays these values.
When the previous day’s range is tighter than the day before, this could suggest a potential explosive momentum today according to Toby Crabel.
An alert pointer (red dot) gets marked along with the narrow range points (under the designated value).
The indicator is displayed in a separate window placed just below the main trading chart.
It fits all kinds of timeframes and currency pairs.
The default indicator settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences. Let’s take a closer look at these inputs below.
Threshold – defines the previous day’s range threshold;
Show Small Range – defines whether to display narrow range signals or not (Yes/No);
Calculation period mode – defines the period mode calculation;
Current – calculations on the current bar;
Previous – calculations on the previous bar.
The formula for the SRange Contraction indicator:
The calculations of the SRange Contraction indicator are based on the following formula:
RC = 100.0 * (High[Period] – Low[Period]) / (High[Period+1] – Low[Period+1])
RC < Threshold: Breakout = RC
How to set up the SRange Contraction indicator in MT5?
Copy and paste the SRange_Contraction.mq5 or SRange_Contraction.ex5 indicator files into the MQL5 folder of the Metatrader 5 trading platform.
You can gain access to this folder by clicking the top menu options, which goes as follows:
File > Open Data Folder > MQL5 > Indicators (paste here).
Now go to the left side of your MT5 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.
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